Renovation spending reached its peak in 2023 and continues to surpass pre-Covid levels. Homeowners are reluctant to relinquish their low-rate mortgages, and fewer are renovating with the intention to sell their homes.
According to Bloomberg, during the initial phase of the pandemic, historically low loan rates drove increased home sales and spending on renovations across the United States. With interest rates now on the rise, more homeowners are opting to stay in place, yet they continue to invest heavily in enhancements such as bathroom renovations and landscaping upgrades, maintaining near-record expenditure levels. Abbe Will, senior research associate at the Harvard Joint Center for Housing Studies, sums up their mindset: “I expect to remain in this home for the foreseeable future, so how can I enhance its appeal for the duration of my stay?”
